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Former Memphis restaurant owner indicted on sales tax fraud charges

If she's convicted, she could be sentenced to a maximum of two years in prison and fined up to $3,000 for each felony.
Credit: Shelby County Sheriff's Office

MEMPHIS, Tenn. — A former Memphis restaurant owner has been indicted after she allegedly failed to remit all sales tax due to falsifying sales tax returns.

The former owner of Peggy's Just Heavenly Home Cooking, Peggy Jean Brown, was indicted on February 15 on one count of tax evasion and one count of submitting false returns. 

The Tennessee Department of Revenue said if she's convicted, she could be sentenced to a maximum of two years in prison and fined up to $3,000 for each felony.

“Investigations, such as this one, should warn retailers that failing to properly remit all the sales tax monies they collect is a crime, “ Revenue Commissioner David Gerregano said. “The taxes collected from customers are property of the state and local governments at all times. Customers have a right to know that the tax they pay will be remitted to the state and used for public good of all Tennesseans.”

Jail records show Brown was released on her own recognizance. She is due in court on April 19. 

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